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I understand fully. QB has higher reporting standards than pinks. Simple.
Once they remove shell status, they'll be eligible for QX. It's coming.
The one thing that some people seem to be overlooking is that GRN is a cannabis touching company and a US operating MRB has no option but to list on the OTC. To brand them as illegitimate simply because they bought a pink sheet shell is not considering the underlying reasons behind them doing so. Granted, there are bad companies on the OTC, but that's just anecdotal evidence of nothing.
GRNF must list here for a very specific reason - the US considers cannabis illegal. I would suggest you look at the 20+ US cannabis companies that did an RM on the OTC pinks in the last 12-18 months. Most are on the QB or QX now. Most are valued 200M-750M. One is valued 2.9B. I've followed US cannabis stocks very closely the last two years. GRN is following the same pattern that all these other valuable companies went through. Yes, GRN seems to be taking a little longer than the others, but the others really don't have as many different parts to its business. GRN is a little bit unique in the cannabis space.
I'm not worried one bit that this is not going to be a very valuable company. Whether it's billions or not remains speculative (I personally have my doubts), but we'll find out soon enough. Even if it's 500M, that's more than double today's value.
Also note that the cannabis sector is in it's infancy. The potential value 5-10 years from now is exponentially higher as the market matures and expands. The current downturn in the sector will not last. It's actually an excellent time for GRNF to start acquiring companies at a steep discount. I suspect they want to get this shell filled ASAP so they can go about locking down some new acquisitions.
Sorry, but there's nothing meaningless about this. Scams and empty promises DO NOT upgrade to the QB. No reason to. The annual fee alone would deter most, not to mention the reporting and audit requirements.
Annual Fee: $12,000
Application Fee: $2,500
In other words, this is legit.
I'd anticipate them moving up to QX by the end of the year after the shell is filled. One step removed from NASDAQ.
8k coming soon.
If this weren't a reverse merger and they didn't already possess the companies, you might have a point. But since JC owns these assets and stated his intentions to take them public, it seems like the odds he decides not to follow through is pretty low IMO.
Right. It's not done till then. No reason to expect it won't happen. Things are starting to move pretty fast now.
They won't need to do a binding LOI. Signing the merger agreement and filing the S8K detailing the audited assets is all they need to fill the shell. The LOIs and these PRs are just keeping the shareholders apprised of where they are in the process - close to done now.
Which ones would be required by law to list there? Just curious.
Typically, it would be the purchasing company, GRN Funds, and all it's subsidiaries that would merge to the public company. We don't know if that's not the case, but it appears so far that only the subsidiaries in the LOIs are merging, and not the parent. That's just a guess though. I'm not sure they can even split it out like that. I'm just googling RMs like everyone else.
If that were to happen it would be highly unusual, and possibly a first. I haven't been able to find any example of that. To assume this won't take place like every other reverse merger in history is probably not the correct assumption.
Don't get hung up on the word acquisition in the LOIs. There are two ways to acquire assets, through merger or purchase. We already know the path they chose.
Read what you just wrote. "GRNF owns 51%...and to purchase it will dilute"
Explain to me again why they are purchasing assets they already own? It seems like everyone has forgotten this is a reverse merger, not some corporation buying up companies. There is a reason they call it a merger and not an acquisition.
GRN Funds and GRNF are the same, as far as the target assets are concerned.
There is no indication that she does not have employees/associates. Either permanent or contract.
KS Consulting Solutions LLC
Accounting/Auditing Firm
2526 Harlan St.
Edgewater, CO 80214
Either way, it is inconsequential to anything. The argument used to be that there was no auditor. Now we just move the goal posts.
You need to do some research on reverse mergers. lol.
When was Patrick Wlaznak named President of GRN Holding? Did I miss something?
lol. I may have to revise my SP prediction upwards. ;)
Still a reverse merger pending. Just waiting to see the assets. Nothing's changed in that regard.
My sense is they want to do it all at once, on one 8k. Maximum impact. Shouldn't be much longer.
If I could predict dips, I wouldn't have a day job. lol
My realistic expectation is a $5-10/share price. That's been my belief since I first bought in 8 months ago. I've never seen anything to support more than that. There's no need to pretend there's more here. If there is more, so much the better.
This is still a definite buy at the current share price.
JC has never said how much GRN Holding will be worth. That's certainly a highly speculative topic. GRN Funds website mentioned over 1 billion in managed assets. That's not the same as "billions going into this shell". There's no indication that the investment fund is merging to GRNF. That leaves the companies in the LOIs, which are valuable, but probably not worth billions in physical assets. However, if the Pacific Merchant entities have hundreds of millions in deposits, that could very well support a valuation over 1 billion by themselves. Soulshine CBD could support a 250-500M valuation IMO. One of the larger CBD companies, Charlotte's Web, is around 750M. Given a sum total of the 11 companies, I think at least a 1B valuation for GRNF should be pretty easy to reach. Wouldn't be surprised if surges over 5B.
Also, why do you think GRNF has to pay shares for these assets GRN Funds already owns? I just can't understand this rationale. A reverse merger transfers ownership from the private company to the new public company, after gaining controlling interest. They don't buy them with shares. There's a reason the term merger and acquisition are two separate words. I've never heard of an instance where a company paid shares for assets they already own.
I still don't see solid evidence Bazelet is buying a shell/going public. The only link is Disanti took a job there. That's interesting, but inconclusive.
That doesn't explain this delay in revealing the merging company for NVGT either. If Disanti had this lined up with Bazelet, it should be done by now. I don't know if I'm missing something or overly skeptical. lol
I think you will find almost any business in existence has had a lawsuit filed against them. Many are completely without merit. We live in a litigious world, no doubt.
GRNF keeps going up. Nobody believes in unsubstantiated allegations.
What are you talking about? Do you think we're all just buying one small company here? A lot of people were waiting for confirmation that this merger is on track. The PR helped in that regard. GRNF is obviously going much much higher when the 8k drops.
I still have all my shares from last July. Hit 300% today. Maybe 3000% in a few months?
So, how long should it take? If they did this in 6 weeks you'd be saying "Scam! Not thorough enough!" Is 3 months and 2 weeks the sweet spot?
Their accountants are very thorough. Bodes well for the future. ;)
I find it odd that people are arguing about whether a company actually exists as advertised, when they just underwent 6 months of intensive DD and came out perfectly. Maybe some people are just looking at things they don't understand fully?
I'm no lawyer, but I see examples of exemption for venture capital.
Section 203(l) of the Investment Advisers Act of 1940 (the “Advisers Act”), also known as the venture capital adviser exemption, provides that an investment adviser that solely advises venture capital funds is exempt from registration with the SEC under the Advisers Act. The term “venture capital fund” is not defined in the text of the Advisers Act; instead, the term is defined in SEC Rule 203(l)-1(a) as a private fund that meets certain conditions.
Say goodbye to the shell.
MicroCap Advisors up first.
SEATTLE, WA / ACCESSWIRE / January 30, 2020 / GRN Holding Corporation (OTC PINK:GRNF, the "Company"), announced today that the Company has completed its due diligence in connection with the acquisition of Microcap Advisors, LLC.
The acquisition will include all assets, inventory, licenses, intellectual property, and 100% equity in the business. Following the acquisition, Microcap Advisors, LLC will be reclassified as a subsidiary corporation under GRN Holding Corporation.
https://www.accesswire.com/574717/GRN-Holding-Corporation-Completes-Due-Diligence-Relating-to-Acquisition-of-Microcap-Advisors
We don't know their cash flow situation. I'm not going to speculate on what they can or can't afford. And I've been seen plenty of stocks jump 30% the day they announced an acquisition. It's not always bad.
Of course they will dilute. They said as much. For NEW acquisitions or financing if necessary. That's why they're going public. GRN is in the investment business. They buy businesses or stakes in businesses, provide them funding, and allow them to mature and make them money. That's their business model.
Instead of relying solely on private investment monies, they can use public shareholder funds now as well. Dilution. But in the process, it creates value from the acquisition. Dilution is only a negative if they use it without creating return value - such as financing for operating expenses. Look at mid to large cap stocks. Most of them have over 1B shares. They used dilution to grow their company. In return, revenues, profits, valuations and shareholder equity rose.
I don't think it's a scam at all.
That's not how an RM works. The expense is in acquiring the shell, not the assets.
Your'e thinking of this backwards. What would he gain by giving up 44% equity? The benefit of going public and being able to use shares for a myriad of financing activities far outweighs not doing it.
Consider if GRN stayed private, kept 100% profit and grows at 5% a year and made $1.00 a year. In 10 years they'd be making $1.62 a year. (At 10%/yr it's $2.59)
But, if they go public, grows faster at 20% a year by using shareholder funding, what happens? In 10 years, they make $6.19 a year, but keep only 55% - that's $3.40. That's good for both GRN and shareholders.
I will reiterate, he doesn't need to issue shares to transfer ownership of his own assets in a merger. That makes no sense and I don't believe that is how this will go down. Have you ever heard of that happening?
And dilution is all relative to valuation. A $4B company with 1B shares is still a $4.00 stock.
Did you read my response? Semantics. That PR was for shareholder benefit. The specifics of the transactions were not specified.
It really doesn't matter to me how it's done. The end result is the same. Extremely valuable assets belong to GRNF shareholders.
SEC reporting, no debt shell. What's not to like? IPOs give up 25-35% equity all the time. He's paying the premium to RM in (hopefully) less than 9 months, as opposed to a 12-18 month IPO. JC does not like to wait. ;)
The current AS is not relevant to anything. It's easy to raise it, and I'm sure he will.
This is the most confusing stock I've ever bought. lol